War impact looms as remittances dip 5% YoY

Pakistan's workers' remittances posted a year-on-year decline in March 2026, reflecting emerging external risks even as overall inflows remain strong, with analysts warning that escalating geopolitical tensions in the Middle East could weigh on future trends. According to the latest data released by the State Bank of Pakistan (SBP), remittances stood at $3.83 billion in March, down about 5% compared with $4.05 billion in the same month last year, although inflows increased 17% on a month-on-month basis. Despite the decline, cumulative remittances for July-March FY26 reached $30.3 billion, registering an 8.2% year-on-year increase, highlighting continued resilience in overseas inflows. Analysts attribute the monthly rise primarily to seasonal factors, particularly increased transfers ahead of Eidul Fitr. Overseas Pakistanis typically send higher remittances during this period to support h...